INGREDION INCORPORATED REPORTS STRONG THIRD QUARTER 2012 RESULTS
(Thomson Reuters ONE) -
* Third quarter 2012 reported EPS rose 29 percent to $1.45 from $1.12 in the
third quarter 2011
* Third quarter 2012 adjusted EPS increased 27 percent to $1.52 from $1.20 in
2011
* Year-to-date 2012 reported EPS fell 1 percent to $4.06 compared to $4.10 in
the year-ago period
* Year-to-date 2012 adjusted EPS rose 15 percent to $4.11 compared from $3.57
a year ago
* Company raises full year 2012 reported and adjusted EPS guidance
WESTCHESTER, Ill., October 25, 2012 - Ingredion Incorporated (NYSE: INGR), a
leading global provider of ingredient solutions to diversified industries, today
reported results for the third quarter 2012.
"We delivered a strong third quarter in spite of ongoing macroeconomic
volatility," said Ilene Gordon, chairman, president and chief executive
officer. "Our third quarter adjusted earnings per share were the highest
quarterly adjusted EPS in our company's history. Underlying this performance
were volume improvement, operating efficiencies and price increases to cover
higher raw material costs and foreign exchange headwinds. As a result of the
third quarter performance, we are increasing our full year guidance and now
expect adjusted EPS to grow between 17 and 19 percent in 2012.
"We continue to see the strength of our business model, even in challenging
times. We have generated meaningful top and bottom line growth while prudently
navigating a volatile environment. Our confidence in our 2012 outlook and the
reliability of the business prompted us to raise our dividend by 30 percent
during the third quarter," Gordon added.
Earnings Per Share (EPS)
Third quarter diluted EPS rose 29 percent to $1.45 compared to $1.12 last year.
The third quarter of 2012 included $0.07 of restructuring and impairment
charges. The third quarter of 2011 included $0.05 of business integration costs
and $0.03 of restructuring charges. Excluding these items, adjusted EPS
increased 27 percent from $1.20 to $1.52 in the quarter. The estimated drivers
of the increase in the quarter adjusted EPS were $0.25 from margin, $0.07 from
higher volumes, and $0.01 from other income, more than offsetting an unfavorable
currency devaluation of $0.09. Non-operational items contributed $0.08. A lower
tax rate primarily associated with discrete items contributed $0.09, non-
controlling interests and a lower share count contributed $0.01 each, partially
offset by unfavorable net financing costs of $0.03.
First nine months diluted EPS declined 1 percent to $4.06 compared to $4.10 last
year. The first nine months of 2012 included a $0.16 per share benefit from the
release of the Korean deferred tax valuation allowance that was offset by $0.18
of restructuring and impairment charges and $0.03 of business integration
costs. The first nine months of 2011 included a $0.75 gain from a NAFTA
settlement with the government of Mexico, partially offset by $0.17 of business
integration costs and $0.05 of restructuring charges. Excluding these items,
adjusted EPS increased 15 percent from $3.57 to $4.11 in the first nine months.
Financial Highlights
· During the third quarter of 2012, net financing costs were $16 million
versus $13 million in the year-ago period. The increase primarily reflects a
prior year foreign exchange gain.
· The third quarter effective tax rate was 25.5 percent compared to
31.0 percent in the year-ago period. The estimated annual tax rate for the full
year is 29-30 percent compared to 28.7 percent in 2011.
* At September 30, 2012, total debt and cash and cash equivalents were $1.77
billion and $513 million, respectively, versus $1.95 billion and $401
million, respectively, at December 31, 2011.
* In the first nine months of 2012, cash flow from operations was $563 million
compared to $147 million in the year-ago period, primarily driven by an
improvement in trade working capital.
* Capital expenditures, net of disposals, were $202 million in the first nine
months of 2012 compared to $158 million in the same period of 2011.
* As part of its ongoing strategic optimization, the Company is exiting its
relatively small Chinese joint venture. This action resulted in a $4
million impairment charge.
Business Review
Total Ingredion
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2011 Net sales|FX Impact|Volume|Price/mix| 2012 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 1,628 | -73 | 48 | 76 | 1,679 | +3% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 4,672 | -168 | 104 | 280 | 4,888 | +5% |
+-------------+--------------+---------+------+---------+-------------+--------+
North America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2011 Net sales|FX Impact|Volume|Price/mix| 2012 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 889 | -2 | 37 | 53 | 977 | +10% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 2,522 | -11 | 122 | 186 | 2,819 | +12% |
+-------------+--------------+---------+------+---------+-------------+--------+
Third quarter
* Volume up due to strong sales to the soft drink and brewing industries.
* Strong price/mix included sufficient price increases to cover higher input
costs.
* Operating income was up 33 percent, or $25 million, from $77 million to $103
million.
Year-to-date
· Volume rose due to strong sales to the soft drink and brewing
industries.
· Strong price/mix included sufficient price increases to cover higher
input costs.
· Operating income rose 21 percent from $248 million to $299 million.
South America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2011 Net sales|FX Impact|Volume|Price/mix| 2012 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 412 | -52 | -12 | 15 | 363 | -12% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 1,170 | -116 | -34 | 59 | 1,079 | -8% |
+-------------+--------------+---------+------+---------+-------------+--------+
Third quarter
* Volumes soft due to continuing weaker economic activity.
* Operating income in the quarter was $47 million, down 2 percent from $48
million. Favorable price/mix, cost efficiencies and lower corn costs
partially offset the impact of lower volume and foreign currency
devaluations.
Year-to-date
* Volumes soft due to weaker economic activity in the region.
* Operating income was $140 million, down 3 percent from $145 million in the
year-ago period. Favorable price/mix and lower corn costs partially offset
the impact of foreign exchange and lower volumes.
Asia Pacific
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2011 Net sales|FX Impact|Volume|Price/mix| 2012 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 195 | -8 | 23 | 5 | 215 | +11% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 578 | -14 | 30 | 19 | 613 | +6% |
+-------------+--------------+---------+------+---------+-------------+--------+
Third quarter
* Strong volume growth driven by increases in food and beverage volumes.
* Operating income increased 43 percent from $20 million to $29 million as a
result of higher volumes, favorable price/mix, lower raw material costs and
operating efficiencies.
Year-to-date
* Sales growth was driven by strong volumes in Thailand and South Korea.
* Operating income rose 16 percent from $62 million to $72 million.
Europe, Middle East, Africa (EMEA)
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2011 Net sales|FX Impact|Volume|Price/mix| 2012 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 132 | -11 | -1 | 3 | 124 | -6% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 403 | -27 | -14 | 16 | 378 | -6% |
+-------------+--------------+---------+------+---------+-------------+--------+
Third quarter
* Sales fell by $8 million mainly due to currency devaluations; however,
volumes were essentially flat.
* Operating income fell 9 percent, or $2 million in the quarter from $22
million to $20 million mainly due to foreign currency devaluations.
Year-to-date
* Sales fell by $25 million mainly due to currency devaluations.
* Operating income fell 12 percent from $65 million to $57 million due
primarily to volume softness, currency headwinds and higher operating
expenses.
2012 Guidance
Reported EPS expectations for 2012 are in a range of $5.30 to $5.40. The
guidance includes an anticipated $0.33 per share of acquisition integration and
restructuring/impairment charges for the full year, offset by a $0.16 per share
benefit from the reversal of a deferred tax valuation allowance. Excluding
those anticipated charges and benefit, adjusted EPS for 2012 is expected to be
in a range of $5.47 to $5.57, an increase of 17 percent to 19 percent compared
to 2011 adjusted EPS.
The effective tax rate for 2012 is estimated to be approximately 27 percent
while the tax rate used to calculate adjusted EPS is 29 to 30 percent.
Capital expenditures in 2012 are anticipated to be about $300 million and should
support growth investments across the organization, particularly in North
America, South America and EMEA.
Conference Call and Webcast
Ingredion will conduct a conference call today at 8:00 a.m. Eastern Time (7:00
a.m. Central Time) to be hosted by Ilene Gordon, chairman, president and chief
executive officer, and Cheryl Beebe, chief financial officer.
The call will be broadcast in a real-time webcast. The broadcast will consist of
the call and a visual presentation accessible through the Ingredion web site at
www.ingredion.com. The presentation will be available to download approximately
60 minutes prior to the start of the call. A replay of the webcast will be
available at www.ingredion.com.
ABOUT THE COMPANY
Ingredion Incorporated (NYSE:INGR) is a leading global ingredients solutions
provider specializing in nature-based sweeteners, starches and nutrition
ingredients. With customers in more than 40 countries, Ingredion, formerly Corn
Products International, serves approximately 60 diverse sectors in food,
beverage, brewing, pharmaceuticals and other industries. For more information,
visit ingredion.com.
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Company intends
these forward-looking statements to be covered by the safe harbor provisions for
such statements.
Forward-looking statements include, among other things, any statements regarding
the Company's prospects or future financial condition, earnings, revenues, tax
rates, capital expenditures, expenses or other financial items, any statements
concerning the Company's prospects or future operations, including management's
plans or strategies and objectives therefor and any assumptions, expectations or
beliefs underlying the foregoing.
These statements can sometimes be identified by the use of forward looking words
such as "may," "will," "should," "anticipate," "believe," "plan," "project,"
"estimate," "expect," "intend," "continue," "pro forma," "forecast" or other
similar expressions or the negative thereof. All statements other than
statements of historical facts in this release or referred to in this release
are "forward-looking statements."
These statements are based on current expectations, but are subject to certain
inherent risks and uncertainties, many of which are difficult to predict and are
beyond our control. Although we believe our expectations reflected in these
forward-looking statements are based on reasonable assumptions, stockholders are
cautioned that no assurance can be given that our expectations will prove
correct.
Actual results and developments may differ materially from the expectations
expressed in or implied by these statements, based on various factors, including
the effects of global economic conditions, including, particularly, continuation
or worsening of the current economic conditions in Europe, and their impact on
our sales volumes and pricing of our products, our ability to collect our
receivables from customers and our ability to raise funds at reasonable rates;
fluctuations in worldwide markets for corn and other commodities, and the
associated risks of hedging against such fluctuations; fluctuations in the
markets and prices for our co-products, particularly corn oil; fluctuations in
aggregate industry supply and market demand; the behavior of financial markets,
including foreign currency fluctuations and fluctuations in interest and
exchange rates; continued volatility and turmoil in the capital markets; the
commercial and consumer credit environment; general political, economic,
business, market and weather conditions in the various geographic regions and
countries in which we buy our raw materials or manufacture or sell our products;
future financial performance of major industries which we serve, including,
without limitation, the food and beverage, pharmaceuticals, paper, corrugated,
textile and brewing industries; energy costs and availability, freight and
shipping costs, and changes in regulatory controls regarding quotas, tariffs,
duties, taxes and income tax rates; operating difficulties; availability of raw
materials, including tapioca and the specific varieties of corn upon which our
products are based; energy issues in Pakistan; boiler reliability; our ability
to effectively integrate and operate acquired businesses; our ability to achieve
budgets and to realize expected synergies; our ability to complete planned
maintenance and investment projects successfully and on budget; labor disputes;
genetic and biotechnology issues; changing consumption preferences including
those relating to high fructose corn syrup; increased competitive and/or
customer pressure in the corn-refining industry; and the outbreak or
continuation of serious communicable disease or hostilities including acts of
terrorism.
Our forward-looking statements speak only as of the date on which they are made
and we do not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement as a result
of new information or future events or developments. If we do update or correct
one or more of these statements, investors and others should not conclude that
we will make additional updates or corrections. For a further description of
these and other risks, see "Risk Factors" included in our Annual Report on Form
10-K for the year ended December 31, 2011 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Aaron Hoffman, 708-551-2592
Media: Claire Regan, 708-551-2602
3Q 2012 PR Tables:
http://hugin.info/147221/R/1652159/533233.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ingredion Incorporated via Thomson Reuters ONE
[HUG#1652159]
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2012 - 12:30 Uhr
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News-ID 196331
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